Why is FAFSA aid so low compared to in-state vs out-of-state tuition gap?

The in-state vs out-of-state tuition difference exists because state schools are partially funded by state tax dollars. The lower in-state tuition is essentially a benefit to taxpayers who have been supporting the state education system. Students from other states haven't contributed to that tax base, so they pay the full rate. As for your FAFSA aid amount, the $6,500 seems low but typical these days with the new SAI formula. Have you checked if your daughter qualifies for additional state grants or institutional aid? Many schools have their own financial aid programs that can supplement federal aid.

I kno right?? My son got like $5200 and his school costs $23k per year IN STATE!! like wtf am i supposed to do with that??? and dont even get me started on meal plans and housing costs on top. the whole college system is a scam these days tbh

The in-state/out-of-state tuition difference is actually based on state funding mechanisms. Public universities receive significant funding from state appropriations (aka tax dollars), which is why they offer discounted tuition to residents. The difference in cost doesn't reflect an actual difference in educational expenses per student. Regarding your FAFSA award - I'd recommend appealing your SAI calculation if you have any special circumstances not reflected in your tax information. Many families are seeing lower aid amounts with the FAFSA Simplification Act changes, but schools do have professional judgment authority to adjust your aid package.

I've been trying to get through to someone at Federal Student Aid for weeks to appeal our SAI calculation since it didn't account for some major family changes. Finally used a service called Claimyr (claimyr.com) that got me connected to an actual FSA agent in about 20 minutes instead of waiting on hold forever. They have a video showing how it works: https://youtu.be/TbC8dZQWYNQ The agent explained that we could submit documentation for special circumstances directly to our schools, and each school can adjust our aid independently. Apparently the FSA office doesn't handle appeals directly - it's up to each school's financial aid office.

THE ENTIRE SYSTEM IS BROKEN BY DESIGN!!! They WANT us drowning in student loan debt! That's why they make the process confusing and give such pitiful aid amounts. My daughter graduated with $78K in loans for a STATE SCHOOL after we were told she'd get "generous financial aid." The in-state/out-of-state thing is just another way they manipulate the numbers to extract maximum money from families. And don't get me started on the Parent PLUS loan scam where they expect parents to go into massive debt with horrible interest rates right before retirement!

When my oldest was applying to schools last year, we found that some out-of-state public universities actually gave better scholarship packages than our in-state options. Schools like Alabama and Arizona State have aggressive out-of-state recruiting with big merit scholarships that can bring the cost below in-state tuition at home. Worth looking into if your daughter has decent grades/test scores.

To address your original question more directly - the $6,500 aid amount you mentioned is likely the Federal Direct Loan, which maxes out at $5,500-$7,500 depending on year in school. That's not necessarily your total aid package. Did you also receive a Pell Grant? Work-study? State grants? The FAFSA simply determines your eligibility for federal programs and calculates your SAI (Student Aid Index). Each school uses this information differently in their institutional aid packages. Many schools offer significant aid beyond federal programs, especially if your daughter is a strong student. I'd recommend waiting to see the complete financial aid packages from each school before making decisions. They typically include a mix of federal, state, and institutional funds.

My cousin went to school in canada and paid waaaaay less than here even as an international student lol maybe we should all just send our kids to other countries for college

Update: I called three of the schools my daughter was accepted to and explained our situation. Two of them said they would review our financial aid package once we submit documentation about our medical expenses from last year. The financial aid officer at one school actually said they're seeing lots of families with lower aid amounts this year due to the FAFSA formula changes. Apparently the new SAI calculation is hitting middle-income families especially hard. Still frustrating, but at least there's a process to appeal.

As someone new to this whole FAFSA process, I'm really grateful for all the detailed explanations here! My daughter is a junior in high school and I've been dreading dealing with financial aid applications. The information about appealing SAI calculations and looking into out-of-state schools with good merit scholarships is super helpful. I had no idea that some out-of-state schools could actually end up being cheaper than in-state options with the right scholarships. I'm definitely going to start researching those schools mentioned like Alabama and Arizona State. One question - when should we start the FAFSA process for someone who will be a senior next year? I keep hearing horror stories about delays and want to get ahead of it.

As another parent just starting to navigate this process, thank you all for sharing your experiences! Reading through this thread has been incredibly eye-opening. I had no idea about the professional judgment appeals process or that some out-of-state schools could actually be more affordable with merit aid. My son is a sophomore in high school, so I have a bit more time to prepare, but I'm already feeling anxious about the costs. The idea of looking at schools like Alabama and Arizona State is intriguing - are there resources where I can find comprehensive lists of schools known for generous out-of-state merit scholarships? Also, should I be encouraging my son to focus more on test scores if scholarship eligibility is often tied to GPA/SAT combinations? It seems like every point could translate to significant savings down the road.